Researcher Dell’Oro Group on Wi-Fi: <a href="http://www.theregister.co.uk/content/69/32331.html">“revenue and sales growth apart”</a>

Posted by in Analysis on Aug 14, 2003

“During Q2, worldwide shipments of 802.11-based kit were up six per cent on the first quarter’s figure and a massive 69 per cent up on the same period last year.

However, Wi-Fi revenues totalled $149 million during the quarter up just two per cent from Q1′s total of $146 million, and ten per cent above Q2 2002′s $134.1 million.”

In other words, more units are shipping, but the competitive price pressures are shrinking the profit margin. Good news for buyers. And an indicator that the major manufacturers of wi-fi products, such as Cisco and Netgear, will probably continue to have an edge over niche competitors. When profit margins go down, the ability to ship more units becomes critical.

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